I have a problem I can't solve and I need help =)

I have this model

Attachment 27992

So=75 K=80 r=0,02 sigma=0,25 T=1

which gives me: ln(75/80)+(0,002-(1/2*o,25^{2})*1/o,25*1 = -0,3032

Since its probability it can't be negative...??

Printable View

- Apr 17th 2013, 05:19 AManna88Probability
I have a problem I can't solve and I need help =)

I have this model

Attachment 27992

So=75 K=80 r=0,02 sigma=0,25 T=1

which gives me: ln(75/80)+(0,002-(1/2*o,25^{2})*1/o,25*1 = -0,3032

Since its probability it can't be negative...?? - Apr 17th 2013, 01:10 PMShakarriRe: Probability
Is part of that equation or or or